IL SB0056

Establishes protections for tenants with "bona fide leases" in foreclosed residential properties, requiring mortgagees to provide 90 days' notice before termination and allowing month-to-month and week-to-week tenancies to continue under the same notice requirements.

Defines "bona fide lease" as leases meeting specific criteria including arm's-length transactions, fair market rent, and leases entered before or shortly after the lis pendens filing; oral leases are deemed month-to-month unless proven otherwise.

Mandates that court files in forcible entry and detainer actions against tenants with bona fide leases in foreclosed properties be sealed and not disclosed except to law enforcement or government representatives.

Requires mortgagees in possession, certificate holders, and purchasers at judicial sales to notify occupants within 21 days of taking control, providing contact information and rent payment instructions; failure to notify prevents collection of rent or termination of tenancy until notice is given.

Prohibits eviction of tenants current on rent or those who received inadequate notice of payment obligations for 120 days following notice of hearing on supplemental possession petitions, with court records of such proceedings sealed.